Bitcoin FORKED Then $1 BILLION Flooded Into ETFs | Bitcoin Simply

**Dante Cook** (0:00)
I've been around Bitcoin for a long time, and I genuinely can't think of a crazier week than this. Over $130 million worth of people's Bitcoin was stolen. Bitcoin's largest payment server was also attacked. A massive catalyst for Bitcoin with the Clarity Act was pushed to September. Bitcoin literally split into two chains. For the newbies out there, at Block 961,632, there were two versions of Bitcoin at the exact same time. And while everybody was fighting about Bitcoin, crazy stuff was also happening in the current financial system. Japan's four largest insurers have over $100 billion worth of unrealized losses. The United States is openly talking about how they're reshaping global energy flows. China continues to opt out of the current system and accumulate more gold. And the world's most powerful banker just said that America as a global superpower could be slipping away. We've been here before. Everyone's going to come out and say Bitcoin is dead. But I think it's just the opposite. Bitcoin's latest civil war might have accidentally just showed Bitcoin's greatest strength. It gets stronger with every attack. And right now, it's stronger than ever.
This is Dante Cook with Bitcoin Simply.
Let's go.
Block 961,632 finally came. And when it did, the fork-off that we've all been talking about actually happened. BIP 110 nodes rejected this signaling block at Block 961,632, which means there were two tips, two sets of rules, two chains happening simultaneously. Two competing versions of what people think Bitcoin should be. There's a group of people that say Bitcoin is functioning properly. With all of its flaws and all of its warts, there's no reason to panic. We can continually make upgrades and make it better over time. And then there's another group who is positioning with this sort of messaging.

**SPEAKER_2** (1:48)
The thing would be to just hodl both sides, both new assets. But this is a situation where people, if there ends up being a permanent chain split, if there's some sort of hard fork, then people will have the opportunity like they did in 2017 to sell one side of the fork and buy more. So if you own 10 BTC today, you might be able to sell the side that you don't like and get another 10 BTC. But ultimately, I imagine one chain would win in the long run. So a year from now, I think you'd have to ask yourself, do you want corporate captured PayPal Bitcoin, where it's controlled by the miners, and it's controlled by the large corporations? In which case, you're probably better off using Venmo. Or do you want the one that's truly censorship resistant? And that also has the scarcity guarantees, because once big business gets control of Bitcoin, they will increase the maximum supply, they will change the rules. This is what always happens with systems, they get degraded over time, and big Bitcoin or big businesses will be motivated to, and once you destroy the 21 million cap, you don't have that much left.

**Dante Cook** (2:56)
In Bitcoin land, we don't go to the Senate floor, we go to the ring and we actually hash it out. That's what's happening here. People were voting with their hash power, what future they actually believed in for Bitcoin. And for a few minutes, things got interesting. I can't make this up, a Bitcoin mining group named The Roughnecks showed up, and they actually won the first two blocks after this split had happened. Bitcoin Twitter was going crazy at the moment. People were declaring victory and other people were uncertain.
Because all of this talk, spam, filters, knots, core, ocean, sailor, corruption, CIA, miners, it wasn't theoretical anymore. It wasn't a podcast, it wasn't a tweet, it wasn't a backhanded jab or shot at someone else. We were actually going to watch what happened in real time. The Roughnecks were proving that there was actually potentially a future with the BIP-110 chain. But like most people predicted, the large economic actors and most of the players in Bitcoin would just ignore them. And that's actually what happened. At 11:56 p.m. last night, the Roughnecks issued this statement. They said they made a decision to stop mining on the BIP-110 chain. The fight will continue without the Roughnecks as the vanguard. And that was pretty much it.
So, who won?
Sailor put it perfectly. Bitcoin worked exactly as it was designed. BIP-110 gave people the opportunity to fork. And the result was 99.85% of the hash power continued with the core chain. Nobody can stop people from doing what they want. No one can call the Bitcoin CEO and call in a favor. The market actually decides what it wants with its economic weight. Bitcoin is beautiful in that everybody gets a vote and everyone gets a say, but you can't force someone else to say something that they don't want to. That's consensus, true consensus. Not consensus because everyone is forced to agree, but it's because everyone has the opportunity to disagree. And so the true network ultimately chooses. So does BIP 110 expose a weakness in Bitcoin, or does it prove yet again that Bitcoin will survive people trying to change it? I think we got the answer, and I think we see how Bitcoin solves disagreements, which is the exact opposite of our current financial system. Six months ago, at 80% odds, the Clarity Act was supposed to pass. It was supposed to be a layup. I mean, we're underneath the crypto president. Everything's supposed to go well.